We frequently get questions asking, “Where can I get a PowerShell script encoder so I can write secure scripts like the Visual Basic Script Encoder?”

The answer is that it is impossible to hide the password from the user if the script ever needs it. This is true of PowerShell, VBScript, C#, C++, Assembly, or any other language. There will always be some point when your script has reversed all of the encryption / protection mechanisms, giving the “attacker” complete access to it. If you don’t want the password itself hanging around in a script file, you can prompt the user for it. If the user is never supposed to know it, then you need to re-think your architecture.

Microsoft hasn’t been clear enough documenting what protections the Script Encoder offers, but here is an excerpt from the Scripting Guys:

Now, the important thing to keep in mind is that the script is simply encoded (or obfuscated); it is definitely not encrypted. What does that mean? That means the encoder will hide your script from most people; however, a truly determined hacker - armed with a knowledge of codes or armed with a utility downloaded from the Internet - could crack the code. Among other things, that means that you should never do something like “hide” an Administrator password in a script and assume that the Script Encoder will keep it safe from prying eyes. It won’t. It’s an encoder, not an encrypter, and there’s definitely a difference.

I’m not sure why the main download page is fond of the term “determined hacker” – a 30 second search for “vbe decryption” returns pages of results.

Now, a valid response to the whole situation is that you really only want to deter casual investigation, or that reversing the protection can then be linked to a breach of contract or software license. If you are in either of those boats, you don’t need an official tool to do this for you. Hiding your script behind Base64 encoding or ROT-13 should offer plenty of protection, and takes only a few lines of scripting. If you have the skill to make that decision, you have the skill to implement it as well.